Application of Operating Contracts in Chile

CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF), a leading sustainable lithium explorer and developer in Chile for the clean energy transition, is pleased to announce that the Company's subsidiaries in Chile, Atacama Salt Lakes SpA and Laguna Negro Francisco SpA, have submitted applications for the Special Lithium Operation Contracts ("CEOLs") for the Company's two advanced projects; Laguna Verde and Francisco Basin (the "Projects").

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Highlights:

• Following discussions with Government representatives and other stakeholders in Chile, CleanTech Lithium´s wholly-owned subsidiaries, Atacama Salt Lakes SpA and Laguna Negro Francisco SpA, have submitted applications for operating contracts ("CEOLs") for the Company's two advanced projects Laguna Verde and Francisco Basin - These are the first CEOL applications to have been made in Chile since the announcement of the National Lithium Strategy in April 2023.
• In the applications, CTL stated that it is open to inviting the state national mining company, ENAMI, to partner with the Company as a minority stake partner in both the Laguna Verde and Francisco Basin projects through standard joint venture ("JV") arrangements consistent with other such JV arrangements ENAMI has in place in the mining sector in Chile.
• Securing the operating contracts will:
  • be an important milestone towards commercial production of lithium from the Projects.
  • help CTL secure investment for construction of the Projects thus contributing to the future supply of sustainable lithium from Chile to the global battery market for the clean energy transition.
  • open the door for more substantive discussions with potential strategic and offtake partners for the Company's planned lithium production.
• The Company will work with the authorities in Chile over the coming months to seek approval of these applications which are submitted under the terms of the National Lithium Strategy and in compliance with current Chilean law.

Fig 1. Submission documents for Laguna Verde and Francisco Basin operating contracts

The Company's JORC resources across the two projects total >2.7 million tonnes of lithium carbonate equivalent ("LCE") following multiple drilling campaigns and extensive resource evaluation over the past two years. Securing operating contracts from the State will enable the Company to move towards commercial and sustainable lithium production using Direct Lithium Extraction ("DLE"). By inviting the State, through one of its State entities ENAMI, to become a minority partner in both projects, CleanTech Lithium signals its support of the Government of Chile's strategy of promoting public-private partnerships and its ambition to become the leading producer of lithium to the global battery manufacturing market.

The Company's JORC resources across the two projects total >2.7 million tonnes of lithium carbonate equivalent ("LCE") following multiple drilling campaigns and extensive resource evaluation over the past two years. Securing operating contracts from the State will enable the Company to move towards commercial and sustainable lithium production using Direct Lithium Extraction ("DLE"). By inviting the State, through one of its State entities ENAMI, to become a minority partner in both projects, CleanTech Lithium signals its support of the Government of Chile's strategy of promoting public-private partnerships and its ambition to become the leading producer of lithium to the global battery manufacturing market.

Chile holds the largest reserves of lithium in the world but currently only two companies operate commercial lithium production in-country. The operating contract applications were submitted to the Ministry of Mining, outlining the Company´s plan to utilise DLE for the sustainable extraction of lithium from sub-surface aquifers, consistent with the National Lithium Strategy announced in late April 2023. DLE offers a solution to minimising aquifer depletion while featuring a shorter time to production and much higher recoveries of lithium when compared to traditional extraction methods using evaporation ponds.

CTL's Board has followed legal advice and, after undertaking regular dialogue with relevant Government officials, local communities and other stakeholders over recent months, officially submitted the detailed (500+ page) CEOL applications on 6 September 2023. These applications have been formally presented to the relevant Chilean authorities and the Company now expects both applications to go through a formal review process over the next 3-6 months.

Aldo Boitano, Chief Executive Officer, CleanTech Lithium said: "We are the first company in Chile to apply for the operating contracts since the National Lithium Strategy was announced in April 2023. We believe this marks a major step towards advancing lithium supply from Chile to the global battery manufacturing and EV market.

"Following presentations on the National Lithium Strategy by Ministers, the Government has been clear on the need for establishing public-private partnerships to grow the lithium industry. Due to our progress to date, we believe it is the right time for CleanTech Lithium to apply for the operating contracts for Laguna Verde and Francisco Basin. Securing the operating contracts will demonstrate further confidence in our Projects, and, ultimately, enable us to secure the required investment to scale towards production."

"We are open to discussion with the Government and relevant stakeholders about how we can achieve our shared ambition in supporting Chile's vision to be the world's leader in lithium production, a statement made recently by President Boric. We are open to inviting ENAMI to join CTL as a minority partner as part of the new public-private partnership strategy and believe this would be beneficial for all parties. Such partnership would complement and enhance our ongoing engagement and activities with local communities, which is integral to creating a lasting positive impact."

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